Asiana Airlines issues $97 million corporate bond

South Korea’s Asiana Airlines has raised W110b ($97m) from privately placed corporate bonds. These comprise three tranches – W57b with a one-year maturity, W23b due in 18 months, and W30b with a two-year tenor, the airline says Tuesday. This is Asiana’s first bond issuance exceeding W100m since 2015 and investor response was better than expected, the airline states, reflecting positive market outlook of its ongoing, government-backed merger with Korean Air, along with expectations for a recovery from the pandemic and good cargo performance. “The market’s expectation for the merger and acquisition with Korean Air was the driving force behind the issuance of the private placement bonds,” Asiana states. The airline adds that due to the Covid-19 pandemic, it is currently experiencing worsening domestic and overseas business environments, reduced sales and lack of liquidity. Separately, Asiana recently gave low-cost affiliate Air Busan a W30b cash injection, by acquiring non-guaranteed 30-year convertible bonds, according to the airlines’ Korean-language corporate disclosures dated 24 June.<br/>